Fleet operations management

1. EFFICIENT FLEET
MANAGEMENT
Presented by Daniel Pule
ProFleet (Pty) Ltd
Fleet management and consulting
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2. EFFICIENT FLEET MANAGEMENT
 Introduction
 Course description
 Course goals and objectives
 Course outline
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3. Course description
 Structure
 2 days course focusing on the principles of effective fleet management
 Designed for fleet managers, supervisors and other employees involved in day
to day running of fleet operations.
 Participants are assessed through short quizzes and group exercises.
 Discussions and feedback are encouraged through out the course.
 Benefit
 Course is accredited by BQA.
 It is designed to help fleet managers run a more organized fleet with more
complex and robust processes.
 Certificate
 All participants will be issued with a certificate of completion at the end of the
training workshop.
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4. What you will learn
 Demonstrate an understanding of generally accepted fleet management principles
 Conducting a fleet audit
 Fleet management lifecycle
 Selecting appropriate fit for purpose vehicles, vehicle financing and acquisition
 How to develop and implement the fleet policy
 Fleet costs and how to control them
 Insurance, risk and how to minimize it
 Implementing a fleet maintenance program
 Implementing a fleet Safety program
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5. Course outline
 Introduction to fleet management
 The fleet management lifecycle
 Audit and assessment of current fleet
 The fleet policy
 Vehicle selection and acquisition
 Financing your fleet
 Risk & accident management
 Driver selection and vehicle safety
 Fleet costs and types
 Fuel management
 Maintenance management
 Vendor and third party management
 Vehicle replacement and disposal
 Used vehicle remarketing
 Fleet administration
 Auxiliary services in the fleet
 Keeping up with technology trends
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6. Fleet Management – definition:
Fleet management is defined as the utilization of a set of vehicles with the purpose of
providing a service internally in an organization or to a third party, in the most efficient
manner and with a determined level of service and cost
Fleet management is an instrumental aspect to develop the general strategy of the
organization therefore it has to developed and implemented on the guidelines, culture and
goals of the organization
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7. Origins of fleet management
 Ford and GM started their vehicle operations (including issuing staff with cars) in 1903 and
1909
 Managing fleet operations as a business was started by Peterson, Howell and Heather (PHH)
in USA in 1946.
 The company first concentrated on developing car management plans for other companies
and fleet users
 Then they expanded into vehicle leasing operations and soon after, finance leasing
 By 1951 the company ventured into truck leasing and later aircraft leasing
 Fleet management has now grown into a unique discipline with its own scientific processes.
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8. COMMON MISCONCEPTIONS ON FLEET MANAGEMENT
Fleet management is not complicated
Fleet management is not important
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9. WHY FLEET MANAGEMENT IS THOUGHT NOT
TO BE IMPORTANT
 Fleet operations are usually a cost, not revenue.
 Fleet management is usually a back office functions whose immediate customers
are fellow employees.
 The contribution of the fleet to a wider company mission is often misunderstood or
understated.
 Fleet management is not viewed as a real profession.
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10. WHY FLEET MANAGEMENT IS COMPLICATED
Asset Management Enterprise Management
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Asset
management
Vehicle
assignment
Disposal
Dispatching
Acquisition
Fuel mgt.
Accident Mgt.
Replacement
Driver Mgt.
Outsourcing
Vehicle
Selection
Vehicle
utilization
Parts Mgt.
Routing
Risk
Management
Training
SLAs.
Customer
relationship
management
Cost Control
Management
Analysis
Budgeting
Information
systems
Contract Mgt
Performance
Mgt.
Management
Reporting
Benchmarking
Business
planning
Enterprise
management

11. Importance of fleet management
 Cost control: operating a fleet is very expensive as there are always cost overheads.
Putting into use efficient fleet management practices can help companies to reduce
and control costs.
 Security of vehicles and company goods: core elements of fleet management such as
vehicle tracking can contribute immensely to the security of company vehicles and
goods in transit through constant monitoring
 Efficient operations planning: though concepts such route planning, dispatch
management, scheduling etc. fleet management has contributed to better operations
management and customer service to clients
 Customer service: with efficient fleet management, companies can reach and service
more customers in time resulting in happy clients and satisfied employees
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12. QUESTIONS ON FLEET MANAGEMENT PRACTICES IN YOUR
ORGANIZATION
 Does your organization have a designated fleet manager?
 If not, who manages fleet in your organization?
 What is their qualification? Where did they attain their FM expertise?
 What else do they manage?
 Do you have an operating budget for your fleet?
 Does your organization have documented fleet policies and procedures?
 Do you have the right number of vehicles, how do you determine that?
 Do you have the right type of vehicles?
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13. MORE QUESTIONS….
 How much do we spend on our fleet
 How do your measure your fleet costs and performance?
 Are your fleet costs increasing or decreasing?
 Can they be reduced? WHICH ones, and HOW?
 Who is responsible for the costs?
 How do you manage your fleet information and reports?
 Are your vehicles safe to operate?
 Are they safely operated?
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14. FLEET MANAGEMENT ACTIVITIES - DETAILED
 Vehicle assignment
 Acquisition, disposal
 Fleet Operation management
 Utilization management
 Maintenance and Repair
 Parts & Inventory Management
 Vendor and Supplier Management
 Fuel Management
 Personnel Management
 Vehicle Replacement
 Fleet Facilities Management
 Fleet Information Management
 Fleet Cost Management
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15. Functions of the Fleet manager
The fleet manager is central to an organization’s fleet management operations. Their
core functions include but are not limited to the following:
 Formulating fleet policies
 Documenting accurate fleet data
 Fleet administration
 Cost/expense control
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Discuss: Your individual fleet management experiences, day to day activities

16. TRADITIONAL CONCERNS OF FLEET MANAGERS
 Asset management
 Vehicle acquisition
 Maintenance, Servicing and Repairs
 Deployment and Utilization
 Fueling
 Replacement
 Disposal
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17. CONCERNS OF FLEET MANAGERS TODAY
 Asset Management
 Financial Management
 HR and Personnel Management
 Customer Management
 Risk Management
 Decision maker management
 Information Management
 Supplier Management
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18. EFFECTIVE FLEET MANAGEMENT PROGRAM
 An effective fleet management operation should deliver assets that are:
 Available
 Fit for purpose
 Safe
 Reliable
 Economical
 Eco-friendly
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19. Summary
Here is what you have learnt so far:
 What this course entails
 What fleet management means and how it started
 What is its importance to an organization
 What are the core roles of a fleet manager
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